ARLINGTON, Va.--(BUSINESS WIRE)--Consumer demand for emerging technology is redefining the consumer
electronics (CE) landscape. According to the U.S. Consumer
Electronics Sales and Forecasts, the semi-annual industry report
released today by the Consumer Electronics Association (CEA)®,
retail revenues for the consumer electronics (CE) industry are now
projected to grow 2.4 percent in 2015 to reach $285 billion, led by 101
percent year-over-year growth in emerging product categories.

CEA’s consensus forecast reflects U.S. factory sales to dealers and
covers more than 100 CE products. The bi-annual report serves as a
benchmark for the CE industry, charting the size and growth of
underlying categories.

Overall Revenue Growth

The July U.S. Consumer Electronics Sales and Forecasts report
projects that total industry revenue will reach a high of $285 billion,
accounting for retail markup, or $222.7 billion wholesale in 2015, a
steady, 2.4 percent increase from $217.6 billion in sales in 2014. This
midyear update is a slight downward adjustment from CEA’s
projection in January, following slow economic growth in the first
half of the year. Looking ahead to 2016, CEA expects industry sales to
grow by 2.7 percent, with industry revenues reaching an all-time high of
$228.8 billion.

“Consumer technology is about constant and continuous innovation and
that is what we are seeing in 2015,” said CEA President and CEO, Gary
Shapiro. “As the technology industry naturally ebbs and flows, a new
class of tech is generating lots of enthusiasm among consumers. Emerging
categories such as 4K Ultra HD, smart home and health and fitness
technology, are the breakout stars driving the industry onward and
upward.”

While the emerging product categories represent less than five percent
of the entire CE industry revenue forecast, they are expected to
contribute roughly $10 billion to overall CE revenue in 2015. Without
these categories, overall industry revenue would not sustain any growth
in 2015. A few of the stand out products include:

Health and fitness technology: Led by the popularity of
activity tracking devices, health and fitness devices will lead unit
sales among all wearables in 2015 with a projected 20.3 million units
(a 21 percent increase from last year), with revenue reaching $1.8
billion in 2015 (an 18 percent increase year-over-year).

Connected Home Technologies: Including smart thermostats, smart
smoke detectors, IP cameras, smart home systems, smart locks,
connected switches, dimmers and outlets, the booming connected home
technology industry is expected to reach $967 million in revenue in
2015, jumping 32 percent over last year.

Drones: CEA market research expects 2015 to be a defining year
for drones, with the category ideally positioned for steady growth.
According to CEA projections, the U.S. market will approach $105
million in revenue in 2015 (increasing by more than 52 percent from
2014) with unit sales expected to approach 700,000, an increase of 63
percent.

“The back half of the year should give way to improving financial
conditions that will drive consumer spending, setting up a stronger
second half for consumer tech,” said Shawn DuBravac, Ph.D., chief
economist of CEA and author of the New York Times best-seller
Digital Destiny: How the New Age of Data Will Transform the Way We Work,
Live, and Communicate. “The test that remains for 2015 is if the
impressive growth driven by nascent, emerging categories, as well as
subsector growth, can offset some declines in mature categories and
drive the tech industry towards sustained growth in 2015.”

Sales Leaders

Smartphones, tablets, LCD TVs, laptops and desktops remain the top five
largest revenue categories in 2015. Combined, these product categories
contribute over half (53 percent) of the entire industry’s revenues
($119 billion).

Smartphones: As the clear leading sales category in the
industry, smartphone unit shipments are projected to reach 177 million
this year, up seven percent from 2014. Additionally, smartphone
revenues are expected to generate $54 billion in 2015, a ten percent
increase from last year.

Tablets: Phenomenal growth of tablets over the last five years
has accelerated the category’s near-term saturation and maturity.
Today, 54 percent of American households own a tablet according to CEA
research. As the replacement cycle lengthens and consumers
continue to adopt larger screen smartphones, tablets continue a
gradual decline in unit shipments that began last year. CEA projects
unit sales to reach almost 73 million this year, a five percent
decrease from 2014, with revenues expected to reach $23 billion this
year, down by seven percent.

Laptops, Notebooks and Netbooks: As the strongest growth
category in computing, notebooks and netbook unit shipments are
estimated to reach almost 28 million unit shipments in 2015 (a nine
percent increase over 2014) and almost $18 billion in revenue (a nine
percent increase).

Video

TV sales remain critical as the industry’s third-largest contributor to
total industry revenue, with sales of TV sets and displays projected to
reach $19.4 billion in 2015, on par with 2014, and unit sales projected
to reach 36 million, down five percent from last year. Looking ahead,
larger screen sizes and innovative display features have more consumers
upgrading their video experience.

4K Ultra High-Definition: Consumer excitement is driving
incredible growth for 4K UHD TV. Unit shipments of 4K UHD displays are
projected to reach 4.4 million in 2015 (a 210 percent increase),
driven in part by the market introduction of next-generation
technologies. Revenue from 4K UHD displays is expected to reach $5.3
billion in 2015, more than double its 2014 total (a 136 percent
increase).

Large Screens on the Rise: As picture quality improves,
consumers are turning to larger screens sizes. Unit shipments of
televisions over 40-inches will account for 63 percent of television
shipments in 2015, a 10 percent increase from 2014.

The U.S. Consumer Electronics Sales and Forecast 2010-2015 (July
2015) is published twice a year, in January and July, reporting U.S.
factory sales-to-dealers. It was designed and formulated by CEA, the
most comprehensive source of sales data, forecasts, consumer research
and historical trends for the consumer electronics industry. Please cite
any information to the Consumer Electronics Association (CEA)®.
The complete report is available for free to CEA member companies at members.CE.org.
Non-members may purchase the study for $2,000 at the CEA
Store.

About CEA:

The Consumer Electronics Association (CEA) is the technology trade
association representing the $285 billion U.S. consumer electronics
industry. More than 2,000 companies enjoy the benefits of CEA
membership, including legislative and regulatory advocacy, market
research, technical training and education, industry promotion,
standards development and the fostering of business and strategic
relationships. CEA also owns and produces CES – The Global Stage for
Innovation. All profits from CES are reinvested into CEA’s industry
services. Find CEA online at CE.org,
InnovationMovement.com
and through social media: http://www.ce.org/social.